Daily Market Report (27 May 2024)
- Wall Street closed positively as the AI frenzy continues spearheaded by Nvidia.
- This is despite deteriorating expectations that the Federal Reserve will lower interest rates soon.
- As such, the DJIA added 4 points while the Nasdaq surged by 185 points to end on a record high as the US 10-year yield eased to 4.467%.
- In Hong Kong, the HSI declined further as outlook on lower US interest rates wanes coupled with the absence of earnings surprises.
- The HSI lost almost 1,000 points over the last 5 days.
- Back home, the FBM KLCI ended the week negatively at just above the 1,620 threshold seemingly a strong support level as selling continues amid a weak regional performance.
- Nonetheless, we believe some bargain hunting activities to take place today spurred by decent corporate earnings reported thus far.
- We noticed except for the Planters, most sectors had reported an encouraging set of earnings for 1Q24.
- Therefore, we expect the index to hover between the 1,615-1,625 range today.
